Conversion Rate

The percentage of people who take a desired action out of everyone who had the chance: visitors who sign up, trials who pay, and so on.

Conversion rate = actions taken / total opportunities

Why it matters

Conversion rate is the efficiency of every step in your funnel. Small improvements compound across the funnel, so knowing your rates by stage tells you exactly where you are leaking growth.

For example

Of 2,000 free trials, 200 upgrade to paid, a 10 percent trial-to-paid conversion rate.

Related terms

Conversion Rate Optimization Marketing Funnel Activation Rate

Go deeper

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

eChai Partner Brands